Vehicle Networking Market Size - By Vehicle (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles, Automated Guided Vehicles), By Connectivity Standard (CAN, LIN, RF, FlexRay, Ethernet, MOST), Application & Forecast, 2022 - 2030

Vehicle Networking Market Size

Vehicle Networking Market size surpassed USD 1 billion in 2021 and is anticipated to record a CAGR of about 9.5% from 2022 to 2030.
 

Networking protocols can ensure proper functionality and protect the systems from incorrect sub-system behavior. With the strong governments focus on boosting the production and sales of auto components, the requirement for vehicle ethernet networks will surge.
 

Vehicle manufacturers and OEMs have also been gaining financial support from governments to amplify their output and meet the ever-increasing demand. In-vehicle networking architecture is therefore expected to gain traction since it enables OEMs to cope with the rising volume of data that must be stored and transferred around the car.
 

Semiconductor manufacturing companies have been making considerable investments in R&D, to design technologically advanced products. For example, Analog Devices increased its R&D expenditure from USD 1.05 million to USD 1.29 million between 2020 and 2021. To improve vehicle design, auto companies have also been increasing their spending on automotive in-vehicle networking fields, providing lucrative opportunities.
 

Lack of autonomous mobility infrastructure to impede industry growth

Vehicle networking components are widely used in autonomous and connected vehicles. The adoption of autonomous vehicles requires the consistent upgradation of existing infrastructure. The lack of infrastructure for autonomous mobility may hamper vehicle networking market development, especially in underdeveloped and developing countries. Moreover, issues regarding poor road infrastructure and low government funding can lead to a slower integration of vehicle networking solutions.
 

Vehicle Networking Market Analysis

The heavy commercial vehicles segment is slated to depict more than 8% gains through 2030. Steel, cement, oil & gas, and renewable energy are among the key end-users of heavy commercial vehicles. Based on data from World Steel Association, steel demand will likely grow by 2.2% in 2023. It will drive the deployment of heavy commercial vehicles to strengthen the supply chain across the commercial sector, increasing the need for vehicle networking technology.
 

The local interconnect network (LIN) segment is predicted to capture above 20% of the vehicle networking market share by 2030. LIN is designed as a single wire bus with flexibility, low cost, and tolerant attributes, reducing implementation costs and complexities. Most new vehicles contain at least 12 LIN nodes for power windows and other vehicle parts.
 

The vehicle networking market from chassis applications accounted for USD 300 million revenue in 2021. This can be attributed to the rapid development of connected-car technologies to meet the demand for premium driving experiences. For example, in February 2022, Qualcomm Technologies, Inc. unveiled Connectivity-as-a-Service, a feature for Snapdragon Car-to-Cloud Services. This initiative was aimed at enhancing the Snapdragon Digital Chassis connected vehicle platforms.
 

The Europe vehicle networking market size is poised to exhibit approximately 10% growth through 2030, led by escalating funding to complement vehicle electrification and decarbonization. The adoption of vehicle network communication solutions will further be influenced by the robust presence of industry players including Melexis AG and Infineon Technologies, among others, in the region.
 

Impact of COVID-19 Pandemic

Contactless delivery has become an added benefit and necessity in wake of the COVID-19 pandemic. Due to the rapid surge in infected cases, emerging economies have implemented autonomous vehicles for shipping applications. In March 2022, Seven Fresh introduced autonomous vehicles to ensure contact-free food supply in Shenzhen, China. These trends are likely to augment the usage of autonomous vehicle networking solutions to support shipping and delivery operations, even in the post-pandemic world. It will impact the future demand for vehicle networking components and other solutions.
 

Vehicle Networking Market Share

Major companies operating in the vehicle networking market are

• Acome
• Analog Devices
• Bosch
• Broadcom Inc.
• Continental AG
• Marvell Semiconductor, Inc
• Microchip Technology Inc
• NXP Semiconductors
• ON Semiconductor Corp.
• Renesas
• Sierra Wireless Inc
• Spiarent
• Communications PLC
• STMicroelectronics NV
• Texas Instrumental Inc.
• Toshiba Corp.
• Xilinx Inc.

These firms are incorporating collaboration strategies to increase their presence in the market.
 

This vehicle networking market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in “USD million” from 2018 to 2030, for the following segments:

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Market, By Vehicle Type

• PV
• LCV
• HCV
• AGV

Market, By Connectivity Standards

• CAN (Controller Area Network)
• LIN (Local Interconnect Network)
• RF (Radio Frequency)
• FlexRay
• Ethernet
• MOST (Media Oriented Systems Transport)

Market, By Application

• Powertrain
• Safety
• Body Electronics
• Chassis
• Infotainment

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Czech Republic 
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Australia
  • India
  • Taiwan 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia